Financing Receivables (Tables)

9 Months Ended

Sep. 30, 2015

Financing Receivables:

Financing receivables, net of allowances for credit losses, including residual values

	At September 30,		At December 31,
(Dollars in millions)	2015		2014
Current:
Net investment in sales-type and direct financing leases	$	3,252	$	3,781
Commercial financing receivables		6,487		8,423
Client loan and installment payment receivables (loans)		6,456		7,631
Total	$	16,195	$	19,835
Noncurrent:
Net investment in sales-type and direct financing leases	$	4,130	$	4,449
Client loan and installment payment receivables (loans)		5,387		6,660
Total	$	9,517	$	11,109

Schedule of financing receivables and allowance for credit losses by portfolio segment

(Dollars in millions)		Major		Growth
At September 30, 2015		Markets		Markets		Total
Financing receivables:
	Lease receivables	$	5,404	$	1,480	$	6,885
	Loan receivables		9,067		3,147		12,214
Ending balance		$	14,471	$	4,627	$	19,099
Collectively evaluated for impairment		$	14,392	$	4,160	$	18,552
Individually evaluated for impairment		$	79	$	467	$	546
Allowance for credit losses:
Beginning balance at January 1, 2015
	Lease receivables	$	32	$	133	$	165
	Loan receivables		79		317		396
Total		$	111	$	450	$	561
	Write-offs		(4)		(35)		(39)
	Provision		6		102		107
	Other		(6)		(31)		(37)
Ending balance at September 30, 2015		$	107	$	486	$	593
	Lease receivables	$	31	$	191	$	222
	Loan receivables	$	76	$	295	$	371
Collectively evaluated for impairment		$	39	$	34	$	73
Individually evaluated for impairment		$	68	$	452	$	520

(Dollars in millions)		Major		Growth
At December 31, 2014		Markets		Markets		Total
Financing receivables:
	Lease receivables	$	5,702	$	1,943	$	7,645
	Loan receivables		10,049		4,639		14,687
Ending balance		$	15,751	$	6,581	$	22,332
Collectively evaluated for impairment		$	15,665	$	6,156	$	21,821
Individually evaluated for impairment		$	86	$	425	$	511
Allowance for credit losses:
Beginning balance at January 1, 2014
	Lease receivables	$	42	$	80	$	123
	Loan receivables		95		147		242
Total		$	137	$	228	$	365
	Write-offs		(18)		(6)		(24)
	Provision		3		240		243
	Other		(12)		(11)		(23)
Ending balance at December 31, 2014		$	111	$	450	$	561
	Lease receivables	$	32	$	133	$	165
	Loan receivables	$	79	$	317	$	396
Collectively evaluated for impairment		$	42	$	39	$	81
Individually evaluated for impairment		$	69	$	411	$	480

Schedule of recorded investment in financing receivables which are on Non-Accrual Status

	At September 30,		At December 31,
(Dollars in millions)	2015		2014
Major markets	$	2	$	13
Growth markets		68		40
Total lease receivables	$	70	$	53
Major markets	$	12	$	27
Growth markets		127		151
Total loan receivables	$	139	$	178
Total receivables	$	209	$	231

Schedule of impaired client loan receivables

	At September 30, 2015				At December 31, 2014
	Recorded		Related		Recorded		Related
(Dollars in millions)	Investment		Allowance		Investment		Allowance
Major markets	$	50	$	46	$	54	$	47
Growth markets		299		286		299		293
Total	$	348	$	332	$	353	$	340

					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the three months ended September 30, 2015:	Investment		Recognized		Cash Basis
Major markets	$	51	$	—	$	—
Growth markets		325		0		—
Total	$	376	$	0	$	—
					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the three months ended September 30, 2014:	Investment		Recognized		Cash Basis
Major markets	$	67	$	0	$	—
Growth markets		235		0		—
Total	$	302	$	0	$	—

					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the nine months ended September 30, 2015:	Investment		Recognized		Cash Basis
Major markets	$	52	$	—	$	—
Growth markets		320		0		—
Total	$	371	$	0	$	—
					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the nine months ended September 30, 2014:	Investment		Recognized		Cash Basis
Major markets	$	72	$	0	$	—
Growth markets		185		0		—
Total	$	256	$	0	$	—

Schedule of gross recorded investment by credit quality indicator

		Lease Receivables				Loan Receivables
(Dollars in millions)		Major		Growth		Major		Growth
At September 30, 2015:		Markets		Markets		Markets		Markets
Credit Rating:
	Aaa – Aa3	$	621	$	33	$	1,042	$	70
	A1 – A3		1,170		124		1,963		263
	Baa1 – Baa3		1,502		587		2,520		1,248
	Ba1 – Ba2		1,172		229		1,966		488
	Ba3 – B1		500		260		839		553
	B2 – B3		400		171		672		365
	Caa – D		39		76		65		161
Total		$	5,404	$	1,480	$	9,067	$	3,147

		Lease Receivables				Loan Receivables
(Dollars in millions)		Major		Growth		Major		Growth
At December 31, 2014:		Markets		Markets		Markets		Markets
Credit Rating:
	Aaa – Aa3	$	563	$	46	$	993	$	110
	A1 – A3		1,384		178		2,438		425
	Baa1 – Baa3		1,704		900		3,003		2,148
	Ba1 – Ba2		1,154		272		2,034		649
	Ba3 – B1		470		286		827		683
	B2 – B3		372		176		655		420
	Caa – D		55		85		98		203
Total		$	5,702	$	1,943	$	10,049	$	4,639

Schedule of past due financing receivables

							Recorded
	Total				Total		Investment
(Dollars in millions)	Past Due				Financing		> 90 Days
At September 30, 2015:	> 90 days*		Current		Receivables		and Accruing
Major markets	$	7	$	5,397	$	5,404	$	7
Growth markets		32		1,448		1,480		15
Total lease receivables	$	39	$	6,845	$	6,885	$	22
Major markets	$	10	$	9,057	$	9,067	$	10
Growth markets		35		3,112		3,147		21
Total loan receivables	$	45	$	12,169	$	12,214	$	31
Total	$	85	$	19,014	$	19,099	$	53
* Does not include accounts that are fully reserved.

							Recorded
	Total				Total		Investment
(Dollars in millions)	Past Due				Financing		> 90 Days
At December 31, 2014:	> 90 days*		Current		Receivables		and Accruing
Major markets	$	6	$	5,696	$	5,702	$	6
Growth markets		32		1,911		1,943		14
Total lease receivables	$	38	$	7,607	$	7,645	$	20
Major markets	$	9	$	10,040	$	10,049	$	9
Growth markets		35		4,603		4,639		18
Total loan receivables	$	44	$	14,643	$	14,687	$	27
Total	$	82	$	22,250	$	22,332	$	47
* Does not include accounts that are fully reserved.